Research On The Effcet Of China’s Financial Marketization On The Residents’ Property Income

Since the government report proclaim "create conditions so that more people ownproperty income", scholars put more attention on the study of the property income.Property income of residents as a part of the income， the proportion which itaccounted for residents’ income is not high for a long time, the property incomegrowth has great potential. Improve the property income of residents is benefit todomestic demand, and give impetus to economic transformation and upgrading.Financial assets investment profits is an important source for property income ofresidents in our country, therefore, it is necessary to research the financialmarketization how to effect the property income of residents in our country.Firstly, this paper define financial marketization in our country, the conceptincluding interest rate marketization, financial access freely, capital marketdevelopment, the devolpment of Informal finance and so on several aspects. We canfind that China’s financial marketization degree is improving, At the same time weanalyzes the the status and characteristics of property income of residents in ourcountry, although the property income amount is not large and the ratio of propertyincome to national income is low, the increase speed of property income is fast.Besides, we investigate the property income gap between urban and rural residents,and inspect the property income gap between the eastern region and central andwestern regions.Secondly, this paper analyses the financial market how to effect the propertyincome of residents in our country, and find three main influence mechanism: capitalprice competition mechanism, financial products and services competition mechanismand asset combination mechanism. Capital price competition refers to the deepeningof the financial liberalization is accompanied by capital price competition moreintensely, the interest rate adjustment will become more flexible and more frequently,the change of interest rate will be influence the residents’ property income. At thesame time, the informal financial interest rates is flexible, which could be influencethe residents’ property income. Financial products and service competition mechanismrefers to financial marketization also accompanied by financial products and servicecompetition intensifies, more financial products and more financial service will besupplide for the residents of the property income growth, but the regulators must be carry out effective supervision methods,they should prevent financial institutions getinto to investment fields too excessively. Asset portfolio effect mechanism refers to asthe financial marketization goes on, our country’s capital market construction will bemore perfect, more rich level, these will be lay a solid foundation for the applicationof portfolio theory, residents’ assets can be dispersed in more investment products.As the capital account freely convertible, the residents can also put their assetsdispersed in different countries, through effective asset portfolio, residents canmaximize the investment income under the condition of the risk, and to promote theproperty income growth. After that we establish econometric model which use thepanel model to analysis the influence of financial marketization to the propertyincome. We rearch the national level data and regional data at the same time.The empirical results show that China’s financial marketization has positiveeffect for the property income growth of residents in our counry.we can come to thisconclusion from the national data empirical analysis and regional data empiricalanalysis. The coefficient of the eastern region is significantly higher than the Midwest,the reason is mainly that the financial marketization degree is higher in the essterenregion. So the further reform of the financial marketization is very important for theproperty income growth of resident in our country. We also find that saving deposits,the housing market boom degree and the insurance depth have effect statisticallysignificant. However, the rate of residents stock market participation have no effceton property income of the residents, in other words, the stock market of China haveno wealth effect.